Microfinance funds invested actively in 2010
Microrate has published its 6th annual survey of microfinance investment vehicles (MIV), highlighting the trends and outlook for the industry. Based on interviews with executives of the major microfinance investment funds and a survey of the 101 active MIVs, this report examines the key factors that affected the microfinance fund market in 2010 and the trends that are likely to drive growth in 2011 and beyond.
The key findings of the report include:
- The lingering effects of the economic crisis led to the lowest growth rate observed in the past 6 years, with total MIV assets growing 12% in 2010.
- MIVs' microfinance assets, however, grew 18%, which reduced some of the excess liquidity that was built up in 2009.
- Low-priced, domestic funding in key countries has been crowding out foreign private capital.
- Latin America & the Caribbean is now in second place behind Europe/Central Asia in terms of the geographic investment distribution - receiving 35% and 37% respectively of total MIV investments.
- Top fund executives predict growth rates of 20-30% for the remainder of 2011 and into 2012.
- Both MFIs and MIVs are giving increasing priority to social performance.
“One of the most striking results we’ve seen is the resilience of microfinance institutions in weathering the 2008/2009 economic crisis”, comments Sebastian von Stauffenberg, CEO of MicroRate.
MicroRate is the leading microfinance-rating agency dedicated to evaluating performance and risk in microfinance institutions (MFIs), as well as evaluating microfinance funds, also known as microfinance investment vehicles (MIVs). As the oldest and most well-respected organisation of its kind, MicroRate's primary goal is to promote growth in the microfinance industry by facilitating the efficient flow of money from capital markets to MFIs through independent evaluation and increased transparency. Since its inception in 1997, MicroRate has conducted 600 MFI ratings and is the largest MIV evaluator in the industry.
LUMINIS is a three fold initiative. It benefits from the independent industry skills and knowledge-base of MicroRate, the network of the LuxFLAG MIV labeling agency and financing by the Luxembourg State in pursuit of its development goals.
Luminis answers investors' demand for greater transparency and objective analysis of microfinance investment vehicles (MIVs). Luminis is a web-based analytical service of MicroRate that provides professional investors and researchers with the necessary tools to identify, assess, and monitor MIVs that meet their individual requirements.